The editor of this site has received an audit report for Mombasa Water & Sewerage Company (MWSC) showing the massive scale of looting at the institution.
The audit covers all the motor vehicle repairs done by a private firm Vicktel Investment Limited.
a) Frequency of Motor Vehicles Repairs and the Cost incurred
The total cost associated with repairs done by Vicktel Investment Ltd from 10th March 2020 to September 2021 is Kshs. 16,645,324.00.
Moreover the company budget for 2020/2021 was Kshs. 9,600,000 for repairs and maintenance of motorvehicles whereas the actual expenditure for 2020/2021 was Kshs. 13,773,573.70 resulting to net over absorption of Kshs 4,173,573.70 or 43.47% of the total expenditure budget.
During the period 10th March 2020 to September 2021 the vehicle GKB 063B was frequently repaired with a total cost of Kshs. 2,426,658.00.
b) Double payment for the same repairs
The authenticity of Ksh. 2,388,482.00 spent on repairs could not be confirmed as there were repetition of either the invoices, quotations or the spare parts bought.
c) Overcharging of Repairs
The prices quoted for the spare parts used for the repair of motor vehicles were above the market prices considering the payment is made frequently.
A comparison of the quoted prices and the market prices showed that the company has lost at least Kshs 1,620,090.00 on the spare parts bought.
The company has lost more than the amount above because;
- Some payment vouchers worth had no quotation hence the prices could not be compaired with the market prices.
- Also some quotation had no quantities column to ascertain the price per unit for comparison.
- Also some dealers requested for a sample of the spare parts for them to quote the prices, this could not be possible as the spare parts were not recorded nor labelled.
- Four vehicles KAV 269, KBQ 201D, KBU 001T and KBN 976E whose request for quotations we sent were not responded to.
- Also inability to get logbooks for four vehicles made it hard for us to get the quotations for GKB 063B, KBU 048T, KBY 094C and 01CG013A.
d) Unsupported payments
Review of payment vouchers supporting expenditure for maintenance of motor vehicles revealed that an amount of Kshs. 5,904,981.00 was incurred without being fully supported by either quotations or defects forms or both. Also on further review some payment vouchers didn’t have post-inspection reports (Job satisfaction form) reports to ascertain whether the repairs were actually done.
This in contrary to the PFM act 2015 section 104 (1) which states that All receipts and payments vouchers of public money, shall be properly supported by the appropriate authority and documentation.
There were also the issue of payments being made above the specified amount in the contract.
The audit recommended the termination of contract and recovery of all monies paid, replacement of fleets requiring a lot of money for repairs.
The full document is shared below:
[embeddoc url=”https://cnyakundi.com/wp-content/uploads/2021/11/motor-vehicles-repair-audit-report.docx” viewer=”microsoft”]
